BTC is currently trading at $20,512, but a cypherpunk believes that the coin will rise to $100,000 this year.
A Bitcoin bull and an inventor, Adam Back, has made a case for Bitcoin rising to $100,000 in 2022. In a Twitter post made on June 16, Back said that the price of the digital currency will rise up to $100k in the months leading to the US elections.
According to him, everyone has their views of macro events that influence the price of the asset. He highlighted that with the election year and inability of the feds to stem the tide of inflation, these are some of factors that will influence the price of the asset in the coming months.
“so the interest rate overhang falls off. and BTC decorrelates somewhere along the way once defi flushed,” Back writes.
Primed for Further Decline
Bitcoin is currently trading just above $20,500 having lost more than two-third of its value since November, last year. On Bitstamp, the asset is currently trading at $20,430, and market sentiments show that it is trending towards further decline.
The 7-days, 21-days and 50-days moving averages show that the trend is still downwards. This is even clearer on the 7-day and one month charts which shows that the price is moving in a descending channel. The Relative Strength Index reports a value of 22, showing that the asset is in the oversold region. With the daily volume down by 24% on June 17, the selling pressure may slack in the coming days.
Unpopular Opinion in Current Market
With the market sentiments low, Back’s predictions are very unpopular at the moment. This is the view of a Bitcoin miner, with the username, Doxxed Elir, who said in reaction to Backs assertion of $100k for BTC in 2022,
“Unpopular opinion: The problem started with CeFi actually, and bled into the DeFi space via a centralized, over-levered actor. Imo this is a reason to get more bullish on DeFi protocols”
Jack Maller Agrees
Even 75-point hikes can only drive artificial dollar demand for so long if confidence is lost.
If confidence is gone, it’s over. They’ll likely have to ease (or revert) policy, even with inflation, especially in an election year.
And for the first time, there’s nowhere to run.
— Jack Mallers (@jackmallers) June 17, 2022
For some reasons, the founder and CEO of Strike, Jack Maller, agrees with Back’s position. Maller said that:
“The Fed can’t possibly hike rates as they claim. There’s too much debt in the system. They’d bankrupt everything, and the market is calling their bluff. I’m not sure there’s ever been an environment with inflation to the tune of 8%+ and bonds only yielding 3%.”
He maintained that an increase in rates even up to 75% can only drive an artificial demand for the USD. In his opinion, the Feds have to ease the policy or revert it despite this being an election year.